Ethereum (ETH) Price Update: Retesting $850 Resistance!

Hi guys!

Here are my thoughts on ethereum for today.

ETH - 4 Hour Chart (Testing Resistance)

Tools used: Stochastic RSI and Trendlines

Looking at the stoch RSI, ethereum is likely going to retest the resistance on $850 (immediate resistance) and $870 (ichimoku cloud). The higher resistance would be around $900 price area.

Even if ethereum is just going to consolidate, we should see a confirmation tomorrow. Because the trendlines are crossing over on 15th of February.

ETH - Daily Chart

Tools used: Fib Retracement, Stochastic RSI and Moving Average

On the daily chart, you can see that ethereum bounced off nicely from the 100 day moving average. And stoch RSI showing bullish sign (so far at least) so maybe we might see a successful breakout from the current resistance level I mentioned above.

ETH - Weekly Chart (Hammer Candlestick)

Tools used: Fib Retracement

Basically hammer candlestick usually signals a reversal pattern about to happen in the next few days. You can see more details about the conditions when hammer candlestick might be considered strong bullish signal on my previous post about bitcoin.

These are the reasons I don't consider this hammer candle is a strong signal:

1. Looking at the weekly chart there hammer candle didn't close anywhere close to a support line (it closed around $800 which is not a support line).
2. Sell off volume is not really massive compared to the previous ones.
3. Its not oversold (almost oversold) on the stoch RSI.

Having said that, ethereum could be affected by bitcoin's behavior and simply follows whatever bitcoin does (which currently showing signs or reversal).

Disclaimer

You know the drill guys. This is just opinion and not a financial advise. Do you own research and decide your own trades. Cheers!